Part 9: How to Plan for Larger Expenses, House Projects, or Vacations

In this video, we will explore two methods for planning and saving for larger expenses, house projects, or vacations. The first method is the envelope method, an old-fashioned yet effective way of saving money. This method involves setting aside a specific amount of cash for each expense and putting it in a designated envelope. We will discuss how to determine which expenses to save for, how to label and fill the envelopes with the necessary cash, and how this method helps you have more control over your spending.

The second method we will cover is setting up an automatic transfer into a separate savings account. This method is ideal for people who want to save money without thinking about it. We will go over how to determine how much money you want to save each month, how to open a separate savings account specifically for this expense, and how to set up an automatic transfer from your checking account to your savings account. This method ensures that you are consistently saving money each month without having to remember to do it, and you'll have the funds available when it's time to make the purchase. By using these two methods, you can plan and save for larger expenses and enjoy the benefits of having control over your spending and a healthy savings account.